Is the Clean Your Dirty Face Guaranty continuing and irrevocable during the term of the Agreement?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (1) his or her direct and immediate liability under this Guaranty shall be joint and several; (2) he or she shall render any payment or performance required under the Agreement on demand if Franchisee fails or refuses punctually to do so; (3) liability shall not be contingent or conditioned on pursuit by Franchisor of any remedies against Franchisee or any other person; (4) liability shall not be diminished, relieved or affected by any extension of time, credit or other indulgence which Franchisor may grant to Franchisee or to any other person, including the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable during the term of the Agreement; (5) Guarantor is bound by the restrictive covenants, confidentiality provisions, and indemnification provisions contained in the Agreement; and (5) at our request, Guarantor provides the updated financial information to us as may be reasonably necessary to demonstrate his or her ability to satisfy the obligations of the franchise owners under the Agreement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the Guaranty signed by the franchisee's owners is continuing and irrevocable during the term of the Franchise Agreement. This means that the personal guarantee provided by the owners remains in effect throughout the entire duration of the agreement.
Specifically, the document states that the guarantor's liability will not be diminished or affected by any extensions of time, credit, or other allowances that Clean Your Dirty Face may grant to the franchisee. This includes accepting partial payments or compromising claims. These actions do not modify or amend the Guaranty, which remains in full force.
Furthermore, the guarantor is bound by the restrictive covenants, confidentiality provisions, and indemnification provisions outlined in the Franchise Agreement. Clean Your Dirty Face can also request updated financial information from the guarantor to assess their ability to fulfill the franchise owners' obligations under the agreement. This ensures that Clean Your Dirty Face has a continuous and reliable guarantee throughout the franchise term, providing them with financial security and recourse in case of the franchisee's default.